Shares of Drug Firm Rebound as Earnings And Revenues Climb

By LAURENCE DARMIENTO

Staff Reporter

The stock of American Pharmaceutical Partners Inc., one of L.A.’s newest public companies, finally climbed above its $16 offering price last week after tumbling from a $22 a share high following its December IPO.

The West Los Angeles-based manufacturer of generic injectable drugs hit a low of $13 in early February. The company came to market amid legal troubles, including a Federal Trade Commission investigation.

The gains followed a series of buy recommendations as the securities firms that underwrote the $165 million public offering CIBC World Markets, Bank of America Securities and UBS Warburg initiated coverage. The company also announced new product offerings and capped it off with positive earnings news on Feb. 27.

The drug maker reported net income in the fourth quarter of $5.3 million, up from a net loss of $17 million in the like period a year ago. (Excluding an $18.5 million charge for a legal settlement last year, the company said it earned $1.5 million in the fourth quarter of 2000.)

Fourth quarter 2001 revenues were $55.6 million, up from $42.8 million.

Dr. Patrick Soon-Shiong, the company’s chairman and chief executive, told investors that growth was largely the result of nine new product offerings last year.

The company is in third-generation clinical trials in the development of a new form of Taxol, the world’s best selling cancer drug.

The FTC investigation relates to allegations that the company attempted to keep a generic form of Taxol off the market.